Green Ink: Gamed by the Carbon Markets

Crude oil prices recovered after an early dip Monday as traders try to see if the dollar strengthens, reports Reuters, adding that increasing headwinds for crude are intensifying, such as slowing global demand. Don’t get too excited by the big Bakken oil reserves, cautions the Toronto Star: They’re actually small, and devilishly difficult to recover.

The European Union moved a step closer to energy independence from Russia by announcing a deal with Turkmenistan to supply natural gas, if the country can spare any and Europe can find a way to export it, reports the FT. Like a new pipeline: The FT also reports on Greece and Turkey’s first-ever infrastructure cooperation, a gas pipeline from Azerbaijan to start feeding southern Europe.

Environmentalists are battling coal using any means necessary, reports the L.A. Times. The legal campaign has paralyzed many new coal plants, and energy companies say enviro tactics are dirty pool. At least China’s coal future is assured, government officials tell Reuters: China won’t be a net coal importer this year even as demand for energy and industry soars.

The WSJ has a double-whammy on carbon markets. First, a look at the UN crackdown on emissions-offset projects around the world that has made it harder to get emissions-reduction programs approved. And today, a look at EcoSecurities, one of the carbon-market middlemen most hurt by the tougher new climate for selling offsets.

The IMF and the World Bank blame U.S. biofuel subsidies, in part, for rising food prices and global unrest, reports the WSJ (sub reqd). Even with the import tariffs in place, Brazil’s bumper crop of sugar will give it the ability to export ethanol cheaper than U.S. makers can produce it, also in the WSJ (sub reqd.) What about non-food feedstocks? R-Squared takes a closer look at the realities of jatropha in India.

The U.S. solar and wind power industries are reliant on subsidies for new investment, notes the WaPo, and until developers are sure the federal tax credits will be renewed, funding is tight. Finally, the Guardian returns to T. Boone Pickens’ conversion to wind in Texas. The old oil man tells the paper he won’t let the “ugly” turbines on his land and adds: “Don’t get the idea that I’ve turned green…my business is making money, and I think this is going to make a lot of money.”

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About Environmental Capital

Environmental Capital provides daily news and analysis of the shifting energy and environmental landscape. The Wall Street Journal’s Keith Johnson is the lead writer. Environmental Capital is led by Journal energy reporter Russell Gold, and includes contributions from other writers at the Journal, WSJ.com, and Dow Jones Newswires. Write us at environmentalcapital@wsj.com.